Wednesday, January 5, 2011

U.S. Government Losing Money on Real Estate?

If it wasn't bad enough that the U.S. national debt is increasing day by day, it seems as if the Government is losing money on the White House.  According to news reports, it is estimated that the White House has lost nearly 25% of its market value since the peak of the housing boom.  In 2007, the White House was worth $332 million.  Today it is worth a paltry $252 million.

Personally, I don't put much stock in these estimates.  When appraising the value of a typical home, real estate experts look at sales of comparable properties in order to determine a home's value.  In the case of the White House, there aren't too many comparable properties.  I mean, how many 55,000 square foot, 132 room, 35 bathroom six story homes on 18 acres are there in downtown D.C?  How many of those are equipped with a bowling alley, movie theater, tennis court, swimming pool, and putting green?  If you find one, let me know!

I suppose the good thing is that the mortgage on the White House was paid off long ago...

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